6 prosperous tips for purchasing property in Spain

– Bidding is more of a negotiation in Spain, says Carolina Klaive, a real estate broker at Bjurfors in Costa Blanca.

There is much to consider when buying a new home, especially when it’s abroad. To make the transaction as smooth as possible, it’s important to have a clear understanding of the rules in that country, from cash investment to amortization requirements.

In Spain, where Bjurfors has offices in Marbella, Nerja, Alicante, La Mata, and Torrevieja, there are also regional differences to consider.

Your real estate agent will help you find the right property and negotiate a favorable final price.

Guide to the essential aspects of purchasing  property in Spain:

1. Hire a real estate agent (it's free, and make all the difference)

   
   First and foremost, remember that we as real estate agent offer the buyer guidance throughout the entire process at no cost. Our buyer’s agent services help you compare and select locations, navigate the market, assist with negotiations, and ensure you are well-informed about what you are purchasing. Take advantage of this and let our experienced local agents be your advisors for free.
   
   

2. The Bidding Process
   
   

   In Spain, the bidding process is more of a negotiation. Your real estate agent will help you find the right property and negotiate a favorable final price. When purchasing property, it is common to make an initial offer slightly below the asking price. This often leads to the broker and the seller negotiating until a deal is reached. For off-plan properties, influencing the price may not be possible, but a buyer’s agent might negotiate what is included in the purchase price. Since inclusions can vary by project and developer, assistance with this aspect can be valuable.
   
   

3. Hire a legal representative

   
   Buying property in Spain is complex, so foreign buyers are strongly advised to hire a legal representative. The legal advisor’s primary role is to protect your interests throughout the deal. They handle all paperwork, contracts, registrations, and ensure that the property is free of any existing debts.
   
   – We have many well-established partnerships and can recommend reputable legal representatives. Some of our offices also have their own representatives that you can hire, says Carolina Klaive.
   
   

4. Obtain a spanish social security number

   
   A NIE number (Número de Identificación de Extranjero) is a Spanish personal identification number required for non-Spanish citizens who wish to register as property owners in Spain. Your legal representative can apply the NIE number for you, or you can apply for it at the Spanish embassy, consulate in your home country, or at a Spanish police station.
   
   
   

5. Mortgage with a spanish bank?

   
   If you choose to apply for a mortgage in Spain, you can expect to borrow between 50-70% of the property’s market value. You might also consider a combined loan if you have assets in your home country. This involves borrowing part of the loan in euros in Spain and part in your home country’s currency.
   
   – It’s important to remember that Spanish banks require mortgages to be amortized by the age of 75, says Carolina Klaive.
   
   

6. How much cash deposit do I need?

   
   The cash deposit required is at least 30% of the purchase price in Spain. Additionally, there are costs for legal representation, taxes, and other fees, amounting to around 10-15% of the purchase price, depending on the region.
   
   Taxes can also vary depending on whether you’re buying a newly built home. Remember, if you’re financing the purchase with a loan, the loan will not cover your cash deposit or the costs associated with taxes and fees.
   
   – In conclusion, since fees and other costs vary by region, consider the 10-15% range as a standard estimate to calculate your total costs, advises Carolina Klaive.

Time to find your future dream home?

Find property for sale in Spain right now through Bjurfors Real Estate.